Shares of retail companies have extended yesterday's gains after the Union Cabinet allowed 51% and 100% FDI in multi-brand and single-brand retail, respectively.

The decision was taken by the cabinet in a meeting later on Thursday amid protests from UPA allies, cleared the proposal along with a set of stringent riders, which may pose a hurdle to many foreign players.

This is the first time since retail FDI was mooted some seven years ago that the proposal reached the cabinet and was finally cleared.

Shares of retail companies are trading higher by 7-13% each in trades following this decission. Pantaloon Retail, jumped 13% to Rs 227. V2 Retail jumped 12.7% to Rs 21. Shopers Stop, Provogue India, Trent, Store One Retail and Brandhouse Retail also rallied 7.7-11% each.